Sales of Continental's tire business increased by 2.5% in the third quarter

According to the recent financial report released by Continental Group, the parent company of Continental Tire, in the third quarter, the group’s tire business revenue fell by 17.
6% and sales increased by 2.
5%; pre-tax operating income (EBIT) fell to US$480 million, with sales of 35.
1 Billion US dollars, operating profit margin fell 3.
5 percentage points to 13.
1%
.


The group said that the main reason for the decline in its tire business revenue is the increase in raw materials, energy and logistics costs
.


In the first three quarters, the group’s operating income in tires almost tripled to US$1.
61 billion, sales increased by 18.
2% to US$10.
2 billion, and an operating ratio of 15.
8%
.


  The group said that the tire business area continues to benefit from the strong truck and passenger car tire replacement business, and the increase in raw material costs has an "increasing adverse impact" on the business
.
Revenue growth is based entirely on higher selling prices, as unit sales fell by 5.
5% compared to the third quarter of 2020, mainly due to a “significant” drop in original equipment (OE) sales
.
In addition, the replacement market sales in North America and China were higher than the 2019 level, while the replacement market sales in Europe, Central Asia, and Africa were slightly lower than the 2019 level
.


  Continental said that in the future, pricing and product mix will be more "favorable" in order to achieve better development
.
Especially in the Americas and Europe, Middle East and Africa, and the fourth quarter earnings headwinds are expected to be "stronger
.
"